North Carolina Down Payment Assistance Programs

Payments Gateway - These programs are the Mortgage Credit Certificate and the deposit Assistance Program.

Also you buy a property and December 1, 2009 and should you qualify for one of these programs, you might also be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a home in the prior three years. It is the exact same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

In case you are eligible for the MCC, it is possible to claim 20% of the interest you pay as a credit on your federal income taxes. You are able to save as much as .

You will have the ability to combine this, should you qualify for the MCC, for 2009. This could reduce a buyer's tax liability .

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and any person expected to live in the residence who is 18 years of age or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.

MCC Income Limitations 1 Person $61,500 2 Individuals $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing Dwelling $210,000

The buyer just has to pay and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC plan summarized above. Like the MCC program, it may be used together with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nevertheless, can't be used along with the MCC. It is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Persons $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Support Sales Cost Limits New House $210,000 Existing Home $210,000